Consider the following cash flow profile and assume MARR is 10 percent/year. EOY.      0        1        2       3        4        5        6 NCF  -$100  $800  -$750  $900  -$950  $700  -$800 What does Descartes’ rule of signs tell us about the IRR(s) of this project? What does Norstrom’s criterion tell us about the IRR(s) of this project? Determine the IRR(s) for this project. Is this project economically attractive?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter11: Capital Budgeting And Risk
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Consider the following cash flow profile and assume MARR is 10 percent/year.

EOY.      0        1        2       3        4        5        6

NCF  -$100  $800  -$750  $900  -$950  $700  -$800

What does Descartes’ rule of signs tell us about the IRR(s) of this project? What does Norstrom’s criterion tell us about the IRR(s) of this project? Determine the IRR(s) for this project.
Is this project economically attractive?

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